Most students of economics are familiar with market and socialist economies, but Islamic Economics are not as well known. In general, Islamic Economics apply the tenets of the Qur'an to an economic context, creating a system that diverges significantly from other models. If you're having a hard time wrapping your head around this different paradigm, Varsity Tutors can refer you to an Islamic Economics tutor today.
Here are some of the core concepts you may discuss during Islamic Economics tutoring sessions:
- Macro/Micro Islamic Economic Analysis
- Quran Teachings in Economics
- Islamic Banking (Prohibition of Riba, or Interest)
- Islamic Theory of Taxation (Zakat, or taxes, are paid based on wealth and not trade)
- Prohibition of Gharar (Uncertainty) in Business Dealings
- Mudarabah Models (Profit and Loss Sharing)
Your Islamic Economics tutor may create flashcards to make each term easier to remember. For example, the defining characteristic of Islamic Economics is the prohibition of interest of any kind, fundamentally altering how banks deal with consumers. Mudarabah is a system by which money is transferred from an investor to another party to do with as they like, with the resulting profits or losses shared according to a predetermined ratio. Many advocates of Islamic Economics support this model as being the most compliant with Islamic teachings, but it runs into several problems with risk and flexibility relative to Western banks.